AsianFin -- Shares of Pop Mart International Group Ltd., one of China’s leading toymakers, fell sharply in Hong Kong on Monday, dropping nearly 9%—their largest single-day decline since April. The slide erased billions of dollars in market value as investor enthusiasm around the company’s popular Labubu dolls cooled.

The decline followed a downgrade by JPMorgan Chase & Co., which cited weak growth catalysts and an unattractive valuation as reasons for the reassessment. Despite the setback, Pop Mart remains a standout performer, with its stock up more than 180% year-to-date, continuing to lead gains on the Hang Seng Index.

The recent market correction highlights the volatility inherent in collectibles-driven businesses, where consumer demand can shift rapidly, affecting both sales and investor sentiment. Analysts suggest that while Pop Mart’s long-term prospects remain tied to its brand strength and new product launches, short-term stock movements will likely continue to respond to hype cycles and market sentiment around its limited-edition toy releases.